07 Oct Dependent Tax Deduction After Divorce
Taxes are a burden we all wish we could avoid. Luckily, with kids, that’s a possibility. As a parent, claiming a child as a dependent on your taxes may result in a tax break, or credit, to your yearly taxes. That tax break can mean extra food in the house, or new clothes for your child.
The problem comes in the event the family unit splits and custody is divided. The question arises of which parent can rightfully claim the child, or children, as dependent on their taxes. Typically, the custodial parent, or the parent with the majority of custody, can properly claim the child on their taxes. However, in the event parents have a 50/50 custody arrangement, disputes may surface on who can claim the dependent.
When pursuing custody of your children, remember all the factors that may impact the sharing of parental and financial responsibilities.
There is no replacing the value of a court order. Having a court order eliminates repetitive arguments or confusion.